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Yahoo
6 days ago
- Business
- Yahoo
Alibaba vs. JD.com: Which Chinese E-Commerce Stock Has Better Upside?
China's e-commerce titans Alibaba BABA and JD represent two distinct approaches to capturing the world's largest digital commerce market. Both companies have evolved beyond traditional retail platforms, expanding into cloud computing, logistics, artificial intelligence, and global markets. Their recent strategic moves and financial performance paint contrasting pictures of adaptation and growth potential in an increasingly competitive both stocks have faced headwinds from regulatory concerns and market volatility, their divergent paths in AI development, international expansion, and operational efficiency present compelling investment delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now. Alibaba's strategic transformation into an AI-powered technology platform represents a paradigm shift that fundamentally repositions the company for sustained growth. The groundbreaking partnership with HONOR smartphone manufacturer exemplifies this evolution, marking the first successful integration of Alibaba's proprietary AI agents directly into consumer hardware. This breakthrough creates entirely new monetization pathways while expanding Alibaba's technological influence beyond traditional cloud infrastructure into the massive mobile device commitment to invest RMB 380 billion over three years in AI infrastructure demonstrates exceptional confidence in this strategic direction. The widespread adoption of Alibaba's Qwen3 language model across diverse platforms, including Xiaomi's AI assistant and multiple smartphone manufacturers, validates the commercial viability of this approach. This multi-platform integration strategy systematically reduces revenue concentration risks from core e-commerce operations while establishing Alibaba as an indispensable AI infrastructure company's cloud division exhibits accelerating revenue growth driven by surging AI demand, reinforcing the strategic value of this transformation. Alibaba's open-source methodology has generated remarkable results, with more than 300 million global downloads and 100,000 derivative models establishing Qwen as the world's largest open-source AI family. This ecosystem strategy creates powerful network effects that continuously strengthen competitive food delivery market pressures, Alibaba's core e-commerce platforms demonstrate resilient user engagement and improving monetization efficiency through AI-enhanced recommendations and operational optimization. Strategic international partnerships and targeted logistics investments provide supplementary growth channels that complement the primary AI-driven transformation, creating a diversified portfolio of value drivers positioned for long-term Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $10.14 per share, indicating a 12.54% year-over-year increase. Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote See the Zacks Earnings Calendar to stay ahead of market-making news. operational trajectory reveals troubling strategic misalignment that undermines long-term value creation prospects. The aggressive food delivery expansion exemplifies this concerning pattern, generating massive cash outflows while failing to establish sustainable profitability pathways. Despite achieving 20 million daily orders, this rapid scaling systematically erodes margins across all business segments, creating unsustainable unit economics that question management's capital allocation logistics investments through JD Property, including expensive facilities in Abu Dhabi and the United Kingdom, represent poorly timed capital deployment during heightened market uncertainty. These infrastructure-heavy expansions demand substantial resources while domestic competition intensifies, forcing the company to fight battles on multiple fronts simultaneously. The strategic logic appears fundamentally flawed given current operational historical competitive advantage in logistics and fulfillment has become increasingly commoditized as rivals develop comparable capabilities. Partnerships with suppliers like Camposol demonstrate operational competence but lack transformative impact, representing incremental improvements rather than breakthrough innovations. These tactical initiatives fail to create meaningful differentiation in today's technology-driven JoyExpress launch in Saudi Arabia exemplifies JD's capital-intensive expansion philosophy, requiring significant upfront investments without guaranteed returns. This self-operated model, while maintaining service quality, creates operational complexity that strains resources and limits scalability compared to asset-light technology consensus mark for 2025 earnings is pegged at $3.6 per share, indicating a 15.49% year-over-year decline. Inc. price-consensus-chart | Inc. Quote Both Alibaba and currently trade at discounted valuations, presenting attractive entry opportunities for value-conscious investors. Alibaba's P/E ratio of 10.02x appears more compelling despite being higher than JD's 7.66x, given Alibaba's superior financial metrics, diversified revenue streams, and stronger growth prospects in artificial intelligence and cloud computing. The valuation premium reflects market recognition of Alibaba's transformation into a technology-driven platform with multiple value drivers. Image Source: Zacks Investment Research Recent price performance further validates this assessment, with Alibaba shares climbing 25.8% year to date, significantly outperforming 10% decline. This divergence demonstrates investor confidence in Alibaba's strategic direction while highlighting concerns about JD's competitive positioning and margin pressures from food delivery investments. Image Source: Zacks Investment Research Alibaba emerges as the superior investment choice based on its transformative AI capabilities, diversified revenue streams, and strategic positioning for future growth. The company's substantial AI investments, successful partnerships with device manufacturers, and leadership in cloud services create multiple value drivers beyond traditional e-commerce. While JD's operational excellence remains noteworthy, its heavy capital requirements for international expansion and aggressive food delivery competition present significant headwinds. Alibaba's technology-driven approach offers better scalability and margin potential, superior market positioning, and a clearer path to sustainable competitive advantages. The company's AI ecosystem development and cloud infrastructure investments position it advantageously for long-term value creation in China's evolving digital economy. Investors should hold existing Alibaba positions or wait for better entry points, while considering reducing JD exposure given its challenging competitive dynamics and capital-intensive growth strategy. BABA currently carries a Zacks Rank #3 (Hold), whereas JD has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (JD) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Alibaba vs. JD.com: Which Chinese E-Commerce Stock Has Better Upside?
China's e-commerce titans Alibaba BABA and JD represent two distinct approaches to capturing the world's largest digital commerce market. Both companies have evolved beyond traditional retail platforms, expanding into cloud computing, logistics, artificial intelligence, and global markets. Their recent strategic moves and financial performance paint contrasting pictures of adaptation and growth potential in an increasingly competitive both stocks have faced headwinds from regulatory concerns and market volatility, their divergent paths in AI development, international expansion, and operational efficiency present compelling investment delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now. Alibaba's strategic transformation into an AI-powered technology platform represents a paradigm shift that fundamentally repositions the company for sustained growth. The groundbreaking partnership with HONOR smartphone manufacturer exemplifies this evolution, marking the first successful integration of Alibaba's proprietary AI agents directly into consumer hardware. This breakthrough creates entirely new monetization pathways while expanding Alibaba's technological influence beyond traditional cloud infrastructure into the massive mobile device commitment to invest RMB 380 billion over three years in AI infrastructure demonstrates exceptional confidence in this strategic direction. The widespread adoption of Alibaba's Qwen3 language model across diverse platforms, including Xiaomi's AI assistant and multiple smartphone manufacturers, validates the commercial viability of this approach. This multi-platform integration strategy systematically reduces revenue concentration risks from core e-commerce operations while establishing Alibaba as an indispensable AI infrastructure company's cloud division exhibits accelerating revenue growth driven by surging AI demand, reinforcing the strategic value of this transformation. Alibaba's open-source methodology has generated remarkable results, with more than 300 million global downloads and 100,000 derivative models establishing Qwen as the world's largest open-source AI family. This ecosystem strategy creates powerful network effects that continuously strengthen competitive food delivery market pressures, Alibaba's core e-commerce platforms demonstrate resilient user engagement and improving monetization efficiency through AI-enhanced recommendations and operational optimization. Strategic international partnerships and targeted logistics investments provide supplementary growth channels that complement the primary AI-driven transformation, creating a diversified portfolio of value drivers positioned for long-term Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $10.14 per share, indicating a 12.54% year-over-year increase. Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote See the Zacks Earnings Calendar to stay ahead of market-making news. operational trajectory reveals troubling strategic misalignment that undermines long-term value creation prospects. The aggressive food delivery expansion exemplifies this concerning pattern, generating massive cash outflows while failing to establish sustainable profitability pathways. Despite achieving 20 million daily orders, this rapid scaling systematically erodes margins across all business segments, creating unsustainable unit economics that question management's capital allocation logistics investments through JD Property, including expensive facilities in Abu Dhabi and the United Kingdom, represent poorly timed capital deployment during heightened market uncertainty. These infrastructure-heavy expansions demand substantial resources while domestic competition intensifies, forcing the company to fight battles on multiple fronts simultaneously. The strategic logic appears fundamentally flawed given current operational historical competitive advantage in logistics and fulfillment has become increasingly commoditized as rivals develop comparable capabilities. Partnerships with suppliers like Camposol demonstrate operational competence but lack transformative impact, representing incremental improvements rather than breakthrough innovations. These tactical initiatives fail to create meaningful differentiation in today's technology-driven JoyExpress launch in Saudi Arabia exemplifies JD's capital-intensive expansion philosophy, requiring significant upfront investments without guaranteed returns. This self-operated model, while maintaining service quality, creates operational complexity that strains resources and limits scalability compared to asset-light technology consensus mark for 2025 earnings is pegged at $3.6 per share, indicating a 15.49% year-over-year decline. Inc. price-consensus-chart | Inc. Quote Both Alibaba and currently trade at discounted valuations, presenting attractive entry opportunities for value-conscious investors. Alibaba's P/E ratio of 10.02x appears more compelling despite being higher than JD's 7.66x, given Alibaba's superior financial metrics, diversified revenue streams, and stronger growth prospects in artificial intelligence and cloud computing. The valuation premium reflects market recognition of Alibaba's transformation into a technology-driven platform with multiple value drivers. Image Source: Zacks Investment Research Recent price performance further validates this assessment, with Alibaba shares climbing 25.8% year to date, significantly outperforming 10% decline. This divergence demonstrates investor confidence in Alibaba's strategic direction while highlighting concerns about JD's competitive positioning and margin pressures from food delivery investments. Image Source: Zacks Investment Research Alibaba emerges as the superior investment choice based on its transformative AI capabilities, diversified revenue streams, and strategic positioning for future growth. The company's substantial AI investments, successful partnerships with device manufacturers, and leadership in cloud services create multiple value drivers beyond traditional e-commerce. While JD's operational excellence remains noteworthy, its heavy capital requirements for international expansion and aggressive food delivery competition present significant headwinds. Alibaba's technology-driven approach offers better scalability and margin potential, superior market positioning, and a clearer path to sustainable competitive advantages. The company's AI ecosystem development and cloud infrastructure investments position it advantageously for long-term value creation in China's evolving digital economy. Investors should hold existing Alibaba positions or wait for better entry points, while considering reducing JD exposure given its challenging competitive dynamics and capital-intensive growth strategy. BABA currently carries a Zacks Rank #3 (Hold), whereas JD has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (JD) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Indian Express
10-07-2025
- Business
- Indian Express
US scrutinises Chinese AI for ideological bias, memo shows
American officials have quietly been grading Chinese artificial intelligence programs on their ability to mold their output to the Chinese Communist Party's official line, according to a memo reviewed by Reuters. U.S. State and Commerce Department officials are working together on the effort, which operates by feeding the programs standardized lists of questions in Chinese and in English and scoring their output, the memo showed. The evaluations, which have not previously been reported, are another example of how the U.S. and China are competing over the deployment of large language models, sometimes described as artificial intelligence (AI). The integration of AI into daily life means that any ideological bias in these models could become widespread. One State Department official said their evaluations could eventually be made public in a bid to raise the alarm over ideologically slanted AI tools being deployed by America's chief geopolitical rival. The State and Commerce Departments did not immediately return messages seeking comment on the effort. In an email, Chinese Embassy spokesperson Liu Pengyu did not address the memo itself but noted that China was 'rapidly building an AI governance system with distinct national characteristics' which balanced 'development and security.' Beijing makes no secret of policing Chinese models' output to ensure they adhere to the one-party state's 'core socialist values.' In practice, that means ensuring the models do not inadvertently criticize the government or stray too far into sensitive subjects like China's 1989 crackdown on pro-democracy protests at Tiananmen Square, or the subjugation of its minority Uyghur population. The memo reviewed by Reuters shows that U.S. officials have recently been testing models, including Alibaba's Qwen 3 and DeepSeek's R1, and then scoring the models according to whether they engaged with the questions or not, and how closely their answers aligned with Beijing's talking points when they did engage. According to the memo, the testing showed that Chinese AI tools were significantly more likely to align their answers with Beijing's talking points than their U.S. counterparts, for example by backing China's claims over the disputed islands in the South China Sea. DeepSeek's model, the memo said, frequently used boilerplate language praising Beijing's commitment to 'stability and social harmony' when asked about sensitive topics such as Tiananmen Square. The memo said each new iteration of Chinese models showed increased signs of censorship, suggesting that Chinese AI developers were increasingly focused on making sure their products toed Beijing's line. DeepSeek and Alibaba did not immediately return messages seeking comment. The ability of AI models' creators to tilt the ideological playing field of their chatbots has emerged as a key concern, and not just for Chinese AI models. When billionaire Elon Musk – who has frequently championed far-right causes – announced changes to his xAI chatbot, Grok, the model began endorsing Hitler and attacking Jews in conspiratorial and bigoted terms. In a statement posted to X, Musk's social media site, on Tuesday, Grok said it was 'actively working to remove the inappropriate posts.' On Wednesday, X's CEO Linda Yaccarino said she would step down from her role. No reason was given for the surprise departure.
Asahi Shimbun
10-07-2025
- Business
- Asahi Shimbun
U.S. scrutinizes Chinese AI for ideological bias, memo shows
WASHINGTON--American officials have quietly been grading Chinese artificial intelligence programs on their ability to mold their output to the Chinese Communist Party's official line, according to a memo reviewed by Reuters. U.S. State and Commerce Department officials are working together on the effort, which operates by feeding the programs standardized lists of questions in Chinese and in English and scoring their output, the memo showed. The evaluations, which have not previously been reported, are another example of how the U.S. and China are competing over the deployment of large language models, sometimes described as artificial intelligence (AI). The integration of AI into daily life means that any ideological bias in these models could become widespread. One State Department official said their evaluations could eventually be made public in a bid to raise the alarm over ideologically slanted AI tools being deployed by America's chief geopolitical rival. The State and Commerce Departments did not immediately return messages seeking comment on the effort. In an email, Chinese Embassy spokesperson Liu Pengyu did not address the memo itself but noted that China was 'rapidly building an AI governance system with distinct national characteristics' which balanced 'development and security.' Beijing makes no secret of policing Chinese models' output to ensure they adhere to the one-party state's 'core socialist values.' In practice, that means ensuring the models do not inadvertently criticize the government or stray too far into sensitive subjects like China's 1989 crackdown on pro-democracy protests at Tiananmen Square, or the subjugation of its minority Uyghur population. The memo reviewed by Reuters shows that U.S. officials have recently been testing models, including Alibaba's Qwen 3 and DeepSeek's R1, and then scoring the models according to whether they engaged with the questions or not, and how closely their answers aligned with Beijing's talking points when they did engage. According to the memo, the testing showed that Chinese AI tools were significantly more likely to align their answers with Beijing's talking points than their U.S. counterparts, for example by backing China's claims over the disputed islands in the South China Sea. DeepSeek's model, the memo said, frequently used boilerplate language praising Beijing's commitment to 'stability and social harmony' when asked about sensitive topics such as Tiananmen Square. The memo said each new iteration of Chinese models showed increased signs of censorship, suggesting that Chinese AI developers were increasingly focused on making sure their products toed Beijing's line. DeepSeek and Alibaba did not immediately return messages seeking comment. The ability of AI models' creators to tilt the ideological playing field of their chatbots has emerged as a key concern, and not just for Chinese AI models. When billionaire Elon Musk - who has frequently championed far-right causes - announced changes to his xAI chatbot, Grok, the model began endorsing Hitler and attacking Jews in conspiratorial and bigoted terms. In a statement posted to X, Musk's social media site, on Tuesday, Grok said it was 'actively working to remove the inappropriate posts.' On Wednesday, X's CEO Linda Yaccarino said she would step down from her role. No reason was given for the surprise departure.
Straits Times
09-07-2025
- Business
- Straits Times
US scrutinises Chinese AI for ideological bias, memo shows
Sign up now: Get ST's newsletters delivered to your inbox US officials have been testing Chinese AI models, including Alibaba's Qwen 3 and DeepSeek's R1. WASHINGTON - American officials have quietly been grading Chinese artificial intelligence programmes on their ability to mould their output to the Chinese Communist Party's official line, according to a memo reviewed by Reuters. US State and Commerce Department officials are working together on the effort, which operates by feeding the programmes standardised lists of questions in Chinese and in English and scoring their output, the memo showed. The evaluations, which have not previously been reported, are another example of how the US and China are competing over the deployment of large language models, sometimes described as artificial intelligence (AI). The integration of AI into daily life means that any ideological bias in these models could become widespread. One State Department official said their evaluations could eventually be made public in a bid to raise the alarm over ideologically slanted AI tools being deployed by America's chief geopolitical rival. The State and Commerce Departments did not immediately return messages seeking comment on the effort; China's embassy in Washington did not immediately return an email. Beijing makes no secret of policing Chinese models' output to ensure they adhere to the one-party state's 'core socialist values.' Top stories Swipe. Select. Stay informed. World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Singapore Singapore to hire more than 1,000 new educators annually in the next few years, up from 700 Singapore COE prices rise for all categories Singapore Govt watching job situation for fresh graduates closely, exploring further support: Gan Siow Huang Singapore Man who killed cats by throwing them off HDB blocks has jail term doubled to 27 months Singapore $43k fine for undischarged bankrupt doctor who failed to disclose assets worth over $4m Singapore Female primary school teacher charged over alleged sex acts with underage male student Singapore People working in air-conditioned spaces prefer 24 deg C and warmer: Survey In practice, that means ensuring the models do not inadvertently criticise the government or stray too far into sensitive subjects like China's 1988 crackdown on pro-democracy protests at Tiananmen Square, or the subjugation of its minority Uighur population. The memo reviewed by Reuters shows that US officials have recently been testing models, including Alibaba's Qwen 3 and DeepSeek's R1, and then scoring the models according to whether they engaged with the questions or not, and how closely their answers aligned with Beijing's talking points when they did engage. According to the memo, the testing showed that Chinese AI tools were significantly more likely to align their answers with Beijing's talking points than their US counterparts, for example by backing China's claims over the disputed islands in the South China Sea. DeepSeek's model, the memo said, frequently used boilerplate language praising Beijing's commitment to 'stability and social harmony' when asked about sensitive topics such as Tiananmen Square. The memo said each new iteration of Chinese models showed increased signs of censorship, suggesting that Chinese AI developers were increasingly focused on making sure their products toed Beijing's line. DeepSeek and Alibaba did not immediately return messages seeking comment. The ability of AI models' creators to tilt the ideological playing field of their chatbots has emerged as a key concern, and not just for Chinese AI models. When billionaire Elon Musk - who has frequently championed far-right causes - announced changes to his xAI chatbot, Grok, the model began endorsing Hitler and attacking Jews in conspiratorial and bigoted terms. In a statement posted to X, Mr Musk's social media site, on July 8, Grok said it was 'actively working to remove the inappropriate posts.' On July 9, X's chief executive officer Linda Yaccarino said she would step down from her role. No reason was given for the surprise departure. REUTERS
